Cabinet approves raising of additional share capital of HDFC Bankup to a maximum of Rs. 24,000 crore
New Delhi, June 13 (IBNS): Union Cabinet chaired by Prime Minister Narendra Modi has approved the proposal for grant of permission to HDFC Bank Ltd. to raise additional share capital of up to a maximum of Rs. 24,000 crore, including premium, over and above the previous approved limit of Rs. 10,000 crore, such that the composite foreign shareholding in the Bank shall not exceed 74% of the enhanced paid-up equity share capital of the bank.
"The decision would ensure that the composite foreign shareholding in the bank inclusive of all types of foreign investments, both direct and indirect, will not exceed 74% of the enhanced paid-up equity share capital of the bank. It will be subject to Foreign Direct Investment Policy conditionalities and other sectoral regulations / guidelines," read a government statement issued on Wednesday.
The proposed investment is expected to strengthen the capital adequacy ratio of the bank.
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